MI6 thwarts S. Africa-Iran business deal – spy cables

MI6 officials helped stop the sale of equipment by a South African company to an Iranian firm, which was suspected of involvement in weapons manufacturing in Iran, a leaked spy cable reveals.

According to a cable
titled “Secret UK/SA eyes only,” which was obtained by
Al Jazeera’s Investigative Unit, Britain said Electric Resistance
Furnaces (ERFCO) had struck a deal with Iran worth between
$500,000 and $1 million (£325,000-£640,000), between late 2007
and early 2009.

The document reveals the work of MI6 and other foreign
intelligence services to halt what they saw as the material
support of Iran’s nuclear weapons and ballistic missile program.

The secret document was titled: “Urgent request for
assistance to halt ERFCO Furnaces supplying equipment to
Iran.” It says the furnace company dealt with several front
companies to ultimately serve the Iranian Shahid Sattari Ground
Equipment Industries (SSGEI) organization.

This organization was described by the British as
“responsible for the production of missile launchers and
ground support equipment and is involved in the development of
rocket bodies.”

The cable states: “It is known that it will significantly
enhance Iran’s ability to produce ballistic missiles, including
some which would be suitable for carrying nuclear warheads.”

The furnace maker was then “advised most strongly” to
end this contract when the project was already two-thirds
completed.

In 2013, the US imposed sanctions on Shahid Bakeri Industrial
Group (SBIG) and Shahid Sattari Ground Equipment Industries
“because these entities contributed materially (or posed a
risk of contributing materially) to the proliferation of WMD or
their means of delivery (including missiles capable of delivering
such weapons),” the US State Department said.

In the cable, British agents urge South African officials to
intervene in the business deal between the two companies.

“We would be grateful for any action you may be able to take
under your export licensing laws to prevent the proposed visits
going ahead, and any other dealings ERFCO and other South African
entities may have with Esfahan Steel/LMI,” the document
said.

“We believe such action would be consistent with South
Africa’s international obligations, as it would be with
ours.”

The #SpyCables
story is going to be interesting to watch unfold. Seems like a
lot of unsavory countries use us as a gateway to the West.

The South African company has since shut down. A former employee
denied it was supplying a military project and said the Iranian
company was a petrochemical firm.

“We were advised most strongly to stop. They said it was in
our best interests to shut it down. We had no choice, so we did.
We were cheesed off about it. We thought we were doing something
legitimate and then suddenly we were told it wasn’t
legitimate,” an ex-employee told the Guardian.